|Posted by thehrdiary on June 27, 2016 at 9:45 PM||comments (0)|
UAE salaries forecast to rise by 4.6% in 2017: report
Salary increases in other parts of the region would be higher compared to UAE
Cleofe Maceda, Senior Web Reporter
June 16, 2016
Dubai: It’s not all doom and gloom on the salary front. According to the latest research, workers in the UAE can expect some good news next year, with wages forecast to increase by an average of 4.6 per cent.
Compensation and reward experts said there is now an increased focus on rewarding workers that matter so much to an organisation’s success, especially since the talent market is increasingly becoming global and fast moving.
Besides, compensation remains the “top-most factor” that drives employee performance, according to Laurent Leclère, senior consultant and data services lead for the Middle East at Willis Towers Watson.
“Effective use of the company’s salary budget should be high on reward professionals’ agenda. Identifying key talent, for not only technical skilled roles but also for the skills necessary for succession planning, is essential to the long-term health of any company,” said Leclère.
Willis Towers Watson has just released findings of its "General Industry Compensation Survey" which includes actual and target amounts paid for all employee salaries, allowances and bonuses.
The report suggests that pay growth could be greater for certain skilled jobs with a smaller talent pool such as digital professionals.
The significant decline in oil prices had earlier cast a cloud of uncertainty over the employment market. Industry sources had said that salaries for many employees in the country would most likely remain unchanged in 2016, as companies work towards cutting costs to weather a “difficult” period. Overall hiring activity has reportedly slowed down, while job cuts have been observed in a number of sectors, including oil and gas and banking.
“We expect salaries to remain broadly flat during the coming year, with workers more concerned about remaining employed than pushing for substantial pay increases,” Trefor Murphy, managing director at Morgan McKinley UAE, said earlier this year.
Yasmeena, an expatriate who has been in Dubai for more than five years, said she does not expect any pay adjustments next year, especially since her company’s finances aren’t in great shape.
“The last salary increase I received was a long time ago, back in 2013. I don’t expect any change next year because there is no revenue in the company where I work and the economy is struggling nowadays,” she said.
Willis Towers Watson’s General Industry Compensation Survey Report noted that a 4.6 per cent salary increase is also expected in Bahrain, adding that Lebanon will most likely enjoy the highest growth at 5.4 per cent, followed by Saudi Arabia and Kuwait (5 per cent) and Qatar (4.8 per cent).
On a global level, employees in Asian countries are predicted to benefit from some of the highest pay rises. Forecast pay adjustments in Europe, Middle East and Africa, averaging at 1.9 per cent, come second, followed by Latin America (1.8 per cent) and North America (1.6 per cent).
The report was based on a survey conducted in February and March 2016, which drew 6,500 sets of responses from companies across 100 countries worldwide.
|Posted by thehrdiary on June 15, 2016 at 5:05 AM||comments (0)|
Civil servants in Singapore to get 0.45-month mid-year bonus in July 2016
Jun 15, 20165:50 AM
DESPITE a poorer economic outlook, civil servants will still get a mid-year variable bonus in July - but it will be smaller than the one they received last year. Similarly, lower-wage workers in the Civil Service will be given a smaller built-in wage increment, said the Public Service Division (PSD).
A 0.45-month mid-year annual variable component (AVC) payment will be given to all 84,000 civil servants.
Grades IV and V officers in the Operations Support Scheme will get a built-in wage hike of S$20 and S$25 respectively. This increase comes on top of their S$30 annual increment for 2016, PSD said in a statement on Tuesday.
The monthly salary scale for Grade IV ranges from S$1,446 to S$1,843; for Grade V, the range is S$1,205 to S$1,536.
The built-in amount for lower-wage officers, which will benefit around 1,500 of them, is lower than the built-in hike given in July last year. The National Wages Council this year recommended a built-in wage hike of S$50 to S$65 for all workers earning up to S$1,100 a month in basic salary.
Last year's built-in wage increase for low-wage civil servants was S$30 when the NWC recommendation was S$60. The mid-year AVC payment last year was 0.5-month; in addition, there was also a one-off bonus of S$500 given to mark Singapore's 50th birthday.
PSD said that the decision on the latest mid-year payouts was made against the backdrop of an economy growing by 1.8 per cent in the first quarter and likely to grow 1-3 per cent for the full year, amid a weaker global economic outlook.
PSD also said that labour demand is tipped to be uneven across sectors. It added that while the jobless rate has stayed low, employment growth has slowed and layoffs are expected in some sectors as the economy restructures.
PSD said that the built-in increments for Grade IV and V officers signals the government's continued commitment to raise the salaries of low-wage civil servants, which is in line with the NWC guidelines.
The mid-year payments were decided in close consultation with the public-sector unions, said PSD. It also said that the government would decide on the year-end AVC payment for civil servants after taking into consideration the economy's performance in the second half of the year.
At the end of last year, civil servants were given a 0.65-month variable bonus plus the annual 13th month bonus, making for a 1.65-month payout in all. Lower-wage officers received an AVC payment of at least S$1,100. The 0.65-month AVC payment was down from 0.8-month given at end-2014, when lower-wage officers got at least S$1,200.
Reacting to PSD's announcement on Tuesday, NTUC assistant secretary-general Cham Hui Fong said: "Considering the slowdown in our economic growth, the payment fairly rewards civil servants for their dedication and contributions."
She said that the labour movement was also "heartened" that the government backed the NWC recommendations to "sustainably" uplift the incomes of lower-wage workers.
G Muthukumarasamy, general secretary of the Amalgamated Union of Public Daily-Rated Workers, said his union understood that because of Singapore's slower economic growth, this year's AVC would be lower than past years'.
|Posted by thehrdiary on June 10, 2016 at 2:45 AM||comments (0)|
Korn Ferry Hay Group 2016 Salary Forecast: Wages Expected to Rise Globally, With Biggest Pay Increase in Three Years
Los Angeles. December 8, 2015
LOS ANGELES, Dec. 8, 2015 - A forecast issued today by Korn Ferry (NYSE: KFY), the preeminent global people and organizational advisory firm, reveals that workers around the world are expected see real wage increases of 2.5% - the highest in three years - as pay increases combine with historically low inflation to leave employees better off.
Forecast remains positive in Europe
According to the Korn Ferry Hay Group forecast, workers across Europe are set to see an average salary increase of 2.8% in 2016 and, with inflation at 0.5%, will see real wages rise by 2.3%. Fuelled by a low inflation environment, those in Western Europe will see a 2% increase in real wages compared to a 2.9% increase in Eastern Europe.
The outlook is positive in the UK, France and Germany. While salary rises will stay at 2.5% in the UK (the same as the last two years), low inflation means that real wages are to increase by 2.3% in 2016 – above the Western European average. Workers in France and Germany are also forecast to see real wage rises of 1.7% and 2.7%, respectively. The picture is similar in Greece, where, despite economic issues, salaries are set to increase 2% (compared to 1.3% last year) with deflation leading to real wage rises of 3.4% expected in 2016.
Two outlier countries are excluded from the regional averages, due to specific political issues causing high inflation which impacts real wage increases. Workers in Ukraine are forecast to see the biggest wage rises in Europe (11.5%), but, due to high inflation (48.3%), real wages are set to drastically reduce by 36.8%. The outlook is similar in Russia as the impact of economic sanctions and falling oil prices hit the economy. Despite an average salary increase of 7%, with inflation at 14.5%, real wages are set to fall by 7.5%. This is significantly more than the 0.7% decrease in real wages seen last year.
Philip Spriet, Global Managing Director for Productized Services at Hay Group said, “This year’s global salary forecast shows that, for the majority of countries, real wage increases in 2016 are set to be the highest in three years. Differing macro-economic conditions means there are stark variations globally, but overall decent pay increases, coupled with extremely low (and in some cases, zero) inflation, mean that the outlook is positive for workers.”
Highest real wage growth in Asia
In Asia, salaries are forecast to increase by 6.4% – down 0.4% from last year. However, real wages are expected to rise by 4.2% – the highest globally. The largest real wage increases are forecast in Vietnam (7.3%), China (6.3%) and Thailand (6.1%). In fact, despite China’s economic slowdown, coupled with plummeting stock markets and reduced exports, workers in the country are set to see an 8% salary increase in 2016 as employment rates continue to grow due to the increasing need for skilled workers and the sustained rise of the burgeoning middle class.
Seeing the benefit of being a part of the fastest growing major economy, Indian workers are also forecast to see the highest real wage increase they have seen in the last three years, at 4.7% compared to 2.1% last year and 0.2% in 2014.
Buoyant labor market in North America
This upward trend can also be seen in North America, where the labor market is buoyant. In the United States, with low inflation (0.3%), employees will experience real income growth of 2.7%. Canadian workers will meanwhile see salaries increase by 2.6% and experience real wage growth of 1.3%. Across the continent, salaries will increase by 2.8% – the same as last year.
Economic turmoil impacting workers in Latin America
Workers in Latin America are forecast to see the largest headline salary rises in 2016 at 11.4%. However, due to high inflation in the region (12.8%), they are expected to see real wage cuts of 1.4%. This is especially evident in Argentina and Brazil, as despite salary increases of 31% and 7.7%, respectively, workers in Argentina will only see a 3.6% increase in wages, and those in Brazil will actually see a real pay cut of 1.2% in 2016.
Ultimately, Venezuela is set to suffer the most significant cut in real income across the globe. Salary increases are high at 70%, but when predicted inflation is factored in (122.6%), employees can expect real wage cuts of 52.6%.
Strong growth in the Middle East and Africa
2016 looks positive for workers in the Middle East and Africa. Despite plunging oil prices and economic and political chaos throughout the region, salaries in the Middle East and Africa are forecast to rise by 5.3% and 6.5%, respectively. Relatively low inflation means that workers are set to see real wage increases of 3.8% and 1.6%.
In the Middle East, Lebanon (11.5%) and Jordan (5.3%) are forecast to see the highest real wage increases, with the UAE set to see the slowest real wage growth (0.9%) – down from 2.8% last year. High inflation in Egypt means it is the only country in the region set to see a cut in real wages (0.4%).
Philip Spriet concludes: “Asia continues to drive growth in wages globally as companies look set to increase wages. However, the global labor market is in flux as the aging workforce in advanced economies begins to take hold. In emerging economies, upskilling workers is crucial for companies to maintain competitive advantage, and those skilled employees can expect to see wages rise as talent shortages in certain regions drives salaries up.”
Average real wages increases are based on 73 countries in Hay Group’s database – excluding Ukraine and Venezuela, where political turmoil and high inflation have led to real wage decreases of 36.8% and 52.6%.
Please note: This study should be credited to “Korn Ferry Hay Group,” and not “Hay” or “Hays,” which are separate and unrelated organizations.
About the study
The data was drawn from Hay Group PayNet which contains data for more than 20 million job holders in 24,000 organizations across more than 110 countries.
It shows predicted salary increases, as forecasted by global HR departments, for 2016 and compares them to predictions made at this time last year regarding 2015. It also compares them to inflation predictions for 2016 from the Economist Intelligence Unit.